What is Written Off in CIBIL Report?

 

An excellent credit history is very important if one wants to borrow some money or be guaranteed a credit card. In fact, the credit history of a person is a key area where CIBIL plays a major role in determining eligibility. If remarks like "Written-off" have been added, even though the CIBIL score mainly acts as a facility-eligibility checkpoint, they can rashly spoil a credit application. So, what exactly is written off in CIBIL? It is crucial for every diligent borrower to know what this signifies and how it has an overall effect on financial health.

 First and foremost, be aware of what a CIBIL report is. This is a compilation of a person's behaviour in matters relating to credit including the nature of default, whether taking loans, usage patterns of credit cards, repayments, and outstanding dues. 

Similar data exist for commercial entities, and banks and financial institutions use this to ascertain qualification for credit applications. If the score is good, it means chances of being given loans at cheaper interest rates are high. 

On the contrary, a poor score may lead to rejection or an increase in rates. Now, what does the term Written Off in CIBIL refer to?

What does Written Off in CIBIL mean?

Written off in a CIBIL implies when a borrower defaults on repayments whether loan or credit card for a longer duration, usually 180 days and above. After exhausting all reasonable recovery routes, a lender writes this off in its books as a loss, treating it as non-collectible. 

The debt never goes away legally, and the account gets marked as bad debt. Well, the written-off status alerts prospective lenders and limits the chances of getting new credit approval. Further, it can linger on the credit report for a couple of years and carry long-lasting impacts on financial credibility.

 

When you see the remark written off in CIBIL on your report, act quickly. Contact the lender for a specific disclosure of the real balance due, and, if possible, pay the amount in full. 

After settlement, request that the lender update your status in CIBIL. While the term will not vanish overnight, demonstrating that the dues have been paid will ultimately improve your credit profile.

 

It is also advisable to frequently check your CIBIL report to ensure that everything is in order. An error or an outdated entry of written off in CIBIL can cause you trouble. If you find discrepancies in the report, raise a dispute with CIBIL to correct the record. 

The term written off in CIBIL is serious, with the understanding that it implies a history of non-payment of dues and scores a dent in creditworthiness. 

However, prompt action and responsible financial behaviour can remedy the situation: keep your repayments prompt. An excellent mix of credit is necessary as well as monitoring your report credit status. Tiny, regular steps scale up to a stronger financial future.